Shares of Rivian Automotive plummeted to a new low Friday after the company cut its 2021 vehicle production target.
Rivian said after the markets closed Thursday that it expected to fall “a few hundred vehicles short” of this year’s production target of 1,200 vehicles. The company said it faced supply chain issues as well as challenges ramping up production of the complex batteries that power the vehicles.
The steep decline occurred despite Wall Street analysts’ warnings that there would undoubtedly be some production bumps in the road for the automaker. Overall, analysts played down the production cut, echoing the company’s view that it will have little or no impact on Rivian’s long-term valuation.
“I don’t personally think it’s that big of a deal,” Wells Fargo analyst Colin Langan said Friday during CNBC’s ’Squawk on the Street.′ “It’s a disappointing start, but it’s pretty small.”
Rivian’s third-quarter results fell in-line with Wall Street revenue expectations and with estimates the company previously released as part of its IPO.